Order Denying Transfer — In re: Countrywide Financial Corp. Mortgage-Backed Securities Litigation

Summary

Order Denying Transfer of the United States Judicial Panel on Multidistrict Litigation in In re: Countrywide Financial Corp. Mortgage-Backed Securities Litigation, MDL No. 2265, filed 02/05/15 as Document 84 in Case 3:14-cv-00706-MHL (Commonwealth of Virginia ex rel. Integra REC LLC v. Countrywide Securities Corp., et al., Eastern District of Virginia). Defendant Countrywide Securities Corp. moved under 28 U.S.C. § 1407(c) to transfer the action to MDL No. 2265, with support from UBS Securities LLC, Credit Suisse Securities (USA) LLC and RBS Securities Inc., and the Commonwealth of Virginia opposed. The Panel concludes that inclusion of the action in MDL No. 2265 is not necessary to achieve the just and efficient conduct of the litigation. It orders that the motion for transfer is denied.

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Case 3:14-cv-00706-MHL   Document
          Case MDL No. 2265       84 545
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                                UNITED STATES JUDICIAL PANEL
                                             on
                                 MULTIDISTRICT LITIGATION


IN RE: COUNTRYWIDE FINANCIAL CORP.
MORTGAGE-BACKED SECURITIES LITIGATION                                                 MDL No. 2265


                                   ORDER DENYING TRANSFER


        Before the Panel:* Defendant Countrywide Securities Corp. (Countrywide) in this Eastern
District of Virginia action (Commonwealth), listed on Schedule A, moves under 28 U.S.C. § 1407(c)
to transfer this action to MDL No. 2265. Defendants UBS Securities LLC; Credit Suisse Securities
(USA) LLC; and RBS Securities Inc. support the transfer motion. Plaintiff, the Commonwealth of
Virginia, opposes transfer.

         After considering the argument of counsel, we conclude that inclusion of this action in MDL
No. 2265 is not necessary to achieve the just and efficient conduct of the litigation. The actions
encompassing MDL No. 2265 share factual questions arising from allegations that Countrywide and
affiliated defendants misrepresented to investors in Countrywide mortgage-backed securities (MBS)
origination practices for, and the credit quality of, the mortgage loans Countrywide originated from
2004 to 2007. See In re: Countrywide Fin. Corp. Mortgage-Backed Sec. Litig., 812 F. Supp. 2d.
1380, 1382 (J.P.M.L. 2011).

        Plaintiff does not dispute that Commonwealth shares questions of fact with the MDL No.
2265 actions. Like the MDL No. 2265 actions, Commonwealth alleges that Countrywide
misrepresented its underwriting standards and the credit risk associated with Countrywide loans
underlying the MBS at issue and also that the credit ratings of those MBS were rendered inaccurate
as a result. The action, therefore, falls within the ambit of MDL No. 2265. But we determined, in
consultation with the transferee judge, that “proceedings in this MDL have advanced to the point that
the continued transfer of related actions is no longer necessary to achieve the purposes of 28 U.S.C.
§ 1407.” Order Vacating Conditional Transfer Order, MDL No. 2265 (FDIC/RBS), at 2 (J.P.M.L.
Aug. 18, 2014). We see no change in circumstances that would prompt the Panel to revisit that
decision.




          *
              Judge Marjorie O. Rendell and Judge Lewis A. Kaplan took no part in the decision of this
matter.
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                                          -2-

      IT IS THEREFORE ORDERED that the motion for transfer of this action is denied.


                                 PANEL ON MULTIDISTRICT LITIGATION




                                                  Sarah S. Vance
                                                      Chair

                                 Charles R. Breyer           Ellen Segal Huvelle
                                 R. David Proctor            Catherine D. Perry
Case 3:14-cv-00706-MHL   Document
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IN RE: COUNTRYWIDE FINANCIAL CORP.
MORTGAGE-BACKED SECURITIES LITIGATION                              MDL No. 2265


                                      SCHEDULE A


            Eastern District of Virginia

      COMMONWEALTH OF VIRGINIA EX REL. INTEGRA REC LLC v. COUNTRYWIDE
          SECURITIES CORP., ET AL., C.A. No. 3:14-00706


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